Beneath the Clouds: The Emerging Low-Altitude Economy

Beneath the Clouds: The Emerging Low-Altitude Economy

While traditional aviation has focused on high-altitude aircraft, over the last decade a quiet revolution has been unfolding below the clouds. From drone deliveries to air taxis, this new economy is set to reshape industries, cities, and the global economic landscape.

The “low-altitude economy (LAE)” can be defined as the use of airspace under 1,000 meters – and up to 3,000 meters in certain areas – for commercial and public service purposes. It is powered largely by advances in drone technology, urban air mobility (UAM), and autonomous aerial systems. This domain includes the use of unmanned aerial vehicles (UAVs), electric vertical take-off and landing aircraft (eVTOLs), and other aerial technologies for applications in logistics, transportation, agriculture, and more. Unlike conventional aviation, these systems operate in close proximity to people, businesses, and infrastructure which makes them highly relevant to local economies.

This article sheds light on the economic potential of the LAE, its key applications in several sectors, the leading country driving its development, challenges, and outlook.

Economic Potential and Value Creation

The LAE is rapidly becoming a transformative force in both advanced and emerging markets. As technology advances and regulatory frameworks mature, the sector is set to reshape urban mobility, rural connectivity, and logistics, while offering new pathways for sustainable development. To understand its potential, it is critical to examine the market size, employment opportunities, urban-rural integration, and environmental implications.

Market Size

The global low-altitude economy is projected to become a multi-billion-dollar industry, driven by rapid advancements in UAM, drone technology, and eVTOL aircraft.

Overall, the low-altitude economy is poised for remarkable expansion, with global market value expected to reach between $150 billion and $200 billion by 2030. In China, the sector has already gained significant traction, exceeding $70 billion in 2024, with particularly strong momentum in regions such as Jiangxi, Shenzhen, and Zhejiang. This rapid growth is fueled by rising demand across multiple industries, including e-commerce, logistics, urban air transport, and advanced data services powered by artificial intelligence.

Within this broader ecosystem, the global urban air mobility market is expected to grow at a strong compound annual growth rate (CAGR) of 25.71% between 2023 and 2035 from $5.32 billion to $86.83 billion. By 2035, the Asia-Pacific region is projected to lead the market with a 40.10% share. This region includes countries like China, Japan, South Korea, and Singapore, with China anticipated to hold the largest share due to its growing population and increasing traffic congestion in major cities. It is important to note, however, that the scale and nature of technology’s adoption remain uncertain. It’s plausible that in the near future, employees may begin commuting using UAVs. In parallel, the revenue in the global drones industry is projected to amount to $4.4 billion in 2025 up from $2.9 in 2018, with a CAGR of 2.18% from 2025-2029. Furthermore, the global eVTOL market is showing strong momentum with its volume expected to reach around 500 units in 2025, generating around $1 billion U.S. dollars in revenue, and increasing significantly to 2,000 units by 2030 and 15,000 units by 2035, reflecting increasing adoption of the technology.

Employment & Job Creation

The low-altitude economy is expected to create high-skilled job opportunities across various disciplines. These include:

• Drone and eVTOL operations and maintenance
• AI and data analytics for aerial systems
• Fleet logistics and urban airspace management
• Regulatory and safety compliance

In counties investing early in this sector, employment gains are expected not only in aviation and tech but also in education, training, and maintenance ecosystems.

Urban-Rural Integration

The sector is expected to contribute to Urban-Rural Integration. Globally, an estimated 2 billion individuals lack access to basic medicines – partly because they live in remote locations. Drones contribute to bridging the gap between cities and remote areas, especially in developing economies. For example, the American drone company, Zipline, has been in the forefront of delivering medical supplies to Ghanaian and Rwandan rural villages. Clinics up to 85 kilometers away are served by its lightweight drones. Drones might complete trips in 30 minutes or less that would have otherwise taken a whole day by car.

Environmental Impact

Electric drones and eVTOLs are emerging as a possible solution to contribute to reducing CO2 emissions, reducing emissions, and improving travel times. Nevertheless, the environmental advantages of drones and eVTOLs are closely tied to the source of electricity used to charge them. To fully realize their sustainability potential, UAM deployment must coincide with a cleaner, renewable-powered energy infrastructure.

Key Applications of the Low-Altitude Economy

The LAE is rapidly finding real-world application across sectors, from logistics and agriculture to disaster response, urban air mobility and infrastructure inspection, transforming how services are delivered.

Logistics

Companies like Zipline International Inc., Amazon Prime Air and Jingdong (JD) Logistics are rolling out drone delivery systems in urban and rural environments. Zipline, based in the U.S. and operating the world’s largest drone delivery network, announced in March 2025 that they have reached 1 million commercial drone deliveries executing deliveries in the U.S. and Sub-Saharan Africa. They also delivered vaccines across four continents. On the other hand, Amazon Prime Air delivers products to consumers via drones since 2022 in the United States launching services in specific cities in California, Texas, and Arizona. Also, Amazon is in the phase of testing drone deliveries in Italy and UK and plans to launch its services in 2025. Moreover, (JD) logistics, a Chinese logistics company has used drone tech since 2016 to serve remote areas and was the first e-commerce company globally to commercialize drone delivery.

Agriculture

Established in 2007, China’s XAG isa world-leading smart agriculture technology company operating in 63 locations across the globe. The company uses agricultural drones for precision spraying and crop monitoring helping farmers grow more crops with lower costs. Similarly, Japan’s Yamaha specializes in industrial-use unmanned helicopters, primarily for agriculture. The technology helps with Aerial crop dusting, spraying agricultural chemicals, and improving farm efficiency amid an aging, shrinking workforce.

Disaster Response

Drones are vital in disaster zones. In Turkey-Syria 2023 earthquake, Drones were deployed to provide aerial views of the earthquake devastation, offering rescuers a clearer assessment of the damage, while their sensor-equipped systems helped detect hazards such as methane gas leaks.

Urban Air Mobility  

Companies like EHang are developing autonomous aerial vehicles (AAVs) for urban air mobility applications, focusing on short- to medium-distance, low-altitude transportation. The company’s eVTOL aircraft are designed for fully autonomous operation, managed through a centralized command-and-control system. Its AAVs are being developed for multiple use cases, including passenger transport, tourism, logistics, and medical aid. In addition, Joby Aviation (U.S. Based Company) is developing an eVTOL aircrafts to transform how people move within and between cities. The company has achieved major milestones in developing and testing its eVTOL technology, including partnerships with NASA and Uber, FAA certification progress, and U.S. Air Force validation. In addition, Joby has partnered with Delta Air Lines to offer home-to-airport services and plans to operate its own commercial air taxi service under a Part 135 Air Carrier Certificate.

Infrastructure Inspection

Firms use drones to inspect power lines, pipelines, and railroads, reducing cost and human risk. For example, In Minnesota, the engineering firm Collins Engineers employs Flyability’s Elios drones to inspect bridges. These drones navigate confined spaces like box girders and areas between beams, capturing high-resolution images without requiring traffic disruptions or specialized vehicles. This approach significantly cuts costs and enhances safety compared to traditional methods. In addition, Shell Petroleum has integrated autonomous drone systems at its Rotterdam facilities to conduct daily inspections of critical infrastructure. These drones, operating from fixed stations, perform routine checks without on-site operators, enhancing safety and reducing inspection times.

Who is Leading the Low-Altitude Economy?

China is emerging as a global leader in the low-altitude economy through a bold, state-backed strategy that combines national planning, regulatory innovation, and aggressive industrial development. In 2020, the Civil Aviation Administration of China (CAAC) approved the establishment of 13 national pilot zones within various development areas, with specific emphasis on drone logistics in two zones and urban drone delivery in three others. The following year, in February 2021, the low-altitude economy was officially incorporated into China’s national development strategy for the first time. By December 2024, the National Development and Reform Commission (NDRC) established a dedicated division to oversee the growth of the LAE. The Civil Aviation Administration of China (CAAC) has introduced flexible airspace regulations to facilitate UAV and eVTOL operations, further accelerating development. Nearly every province has integrated the low-altitude economy into local development strategies, with cities like Shenzhen and Guangzhou leading initiatives in drone delivery, air taxis, and low-altitude tourism. The sector is positioned as a new strategic industry to offset slowing traditional growth drivers, stimulate consumer demand, and address urban and logistical challenges.

China now accounts for over 70% of global patent applications for UAVs and is home to more than 50,000 enterprises engaged in the sector. With projections from the CAAC estimating a five-fold increase in the sector’s value—from RMB 670 billion (~USD 93 billion) in 2024 to RMB 3.5 trillion (~USD 483 billion) by 2035—China is firmly establishing itself at the forefront of this next-generation mobility revolution.

Challenges

Despite its vast potential, the LAE faces a series of complex challenges that must be addressed before it can scale globally. A primary obstacle is regulatory fragmentation: each country enforces distinct rules governing UAVs, making cross-border drone commerce difficult and inconsistent. Harmonizing these regulations remains a critical challenge. In addition to regulation, privacy and security concerns loom large, particularly in dense urban settings, where drones could enable unwanted surveillance and compromise sensitive data. Furthermore, infrastructure gaps limit scalability, as most cities still lack essential facilities such as vertiports, drone charging stations, and low-altitude traffic management systems. Safety is another concern, with risks tied to mid-air collisions, cybersecurity breaches, and unpredictable weather conditions. Liability and insurance frameworks for UAVs are also underdeveloped, raising questions about accountability in the event of accidents. Overcoming these challenges requires coordinated efforts between governments, private sector innovators, and the public to build a supportive, secure, and equitable ecosystem for the LAE’s future growth.

Conclusion

The LAE represents a new frontier with the potential to fundamentally reshape how we move, deliver, and connect. As countries invest and innovate, especially amid the rapid rise of drones and eVTOL technologies, we can expect transformative shifts across transportation, logistics, and urban planning. What’s next for this sector includes the emergence of drone highways and dedicated flight corridors, AI-powered traffic management systems, 5G/6G-enabled remote operations, and cloud-based UAV fleets seamlessly integrated with smart cities and logistics hubs. In the future, drones may replace delivery vans, air taxis could rival rideshare services like Uber, and aerial inspections may become standard practice. Whether you’re a policymaker, entrepreneur, or citizen, understanding and engaging with the low-altitude economy is essential to harnessing its immense opportunities. In this evolving landscape, the sky is no longer the limit—it’s the new beginning.